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  • Must-Know Info for Investing in Commercial REITS, If You Dare [View article]
    The rallies in the REITS is all part of The Conspiracy of Hope.

    The latest spark was the Goldman upgrade of SPG. The pundits have piled in. Now there is talk of REITs buying the secured debt of more battered REITS.

    Don't these REITS have their own refinancing issues. But wait, SPG is up 60% from where it sold stock. They should just sell even more stock! Sell stock until the market says no!
    Apr 17 21:55 pm |Rating: +4 -3 |Link to Comment
  • Commercial Real Estate: Is the Other Shoe About to Drop? [View article]
    It certainly does not help that CMBS were bundled into CDOs. AAA tranches of CDOs are trading like junk.




    On Feb 24 08:10 PM Tom Lindmark wrote:

    > jstratt,
    >
    > Vacancies and related statistics like sublease space have to be viewed
    > on a local basis. National statistics are close to meaningless. I
    > agree that there will be some bargains. How the commercial properties
    > are sold by the bank or the government will determine how deep the
    > bargain.
    >
    > The underwriting problem with CRE was that investors overpaid and
    > lenders justified the debt by accepting proforma rent projections
    > that never had a chance of being realized. Too much leverage was
    > employed and the going-in operating cash short fall was carried by
    > interest reserves. Operating cash flow has no chance of ever achieving
    > projected levels so you just wait for the interest reserve to run
    > out and then it's hand back the keys time.
    Feb 25 00:28 am |Rating: 0 0 |Link to Comment
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